I went through Credit Solutions about 4 years ago, I settled and paid off 6 credit cards.

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I went through Credit Solutions about 4 years ago, I settled and paid off 6 credit cards.

I had one card i made a settlement on and allowed the collection company to take out 16 payments to pay almost 5000 dollars. They took out 13 payments and i notified them, they said it was there mistake and would take out 1 payment to cover the last 3 payments on the what would be the final payment date. When the date came they didnt take it out. I notified them and they told me they were sorry that Capital one took the account away from them. I tried contacting Capital one and they would not speak to me about it. Now a collecton company , law office, is trying to get me to settle for around 5 thousand dollars. They have all the info, and have been shown how i paid 13 payments taken directly from my account. I only owed around 800 dollars. They wont settle for that. Should i just let them go to court and take my chances pleading my side. They know i paid over 4000 dollars on this card that only had a 5000 limit. They say they were not able to contact me because i went through a Credit solution company, who now is out of business. The law office says the money they want another 4900 dollars is for interest. Should i just go to court, i offered them 2700 and they said no. Thanks Steve

Asked on September 20, 2012 under Bankruptcy Law, Oklahoma

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You really need to get a consumer attorney to help you file an answer, a possible counter-suit, and possibly bring someone from Credit Solutions in on the suit.  It looks like you are about to get dinged with the full original amount that you've already paid, interest (at a huge rate), and they will probably ask for attorney's fees on top of that.  This could get very expensive for you very quick. They know you don't have an attorney, and they are going to bully or take advantage of you until you do.

A counter-claim is when you file a suit against someone who is trying to sue you.  If you have provided them documentation that you have paid a significant portion of this debt and they have made no attempts to verify these payments, then they could be in violation of federal collection laws which require them to verify debts, when requested, and which only allow them to collect for amounts that are due.  They are in violation because they are trying to collect more than what is due on the balance.  If you don't file an answer or a counter-suit, then the court could potentially exclude some of the evidence that you have to offer.  You can file an answer on your own, but you would be better off having a consumer attorney at least help you draft an answer that will let you present the issues that you need to be heard.

On a side note (but related issue), you should do some research on Credit Solutions through your attorney general's website the the FTC (Federal Trade Commission) website.  Many of these companies were targeted for class action lawsuits because they defrauded consumers.  You may be able to join in on one of these suits to get your money back from them so that you can forward it on to Capital One.


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